IYR flirted with $75 in May before tapering talk jumped, sending the ETF below $60 in August. The Federal Reserve’s easy money, low interest rate policies after the global financial crisis sent investors scurrying into REIT ETFs because the funds offer yield and a chance for capital appreciation. REITs are required to distribute at least 90% of their taxable income to shareholders. [Top REIT ETFs for Yield]
IYR tries to reflect the performance of the Dow Jones U.S. Real Estate Index, which includes real estate companies and REITs. IYR has a 4.05% 12-month yield and a 0.46% expense ratio. The ETF is home to 98 holdings, the majority of which are specialty or retail REITs.
iShares U.S. Real Estate ETF
Tom Lydon’s clients own shares of VNQ